The Republican lawsuit targets reinsurance that helps insurance companies provide universal coverage without accounting for pre-existing conditions.
HOUSTON--(BUSINESS WIRE)--Jan. 4, 2007--AIG Annuity Insurance Company today announced the introduction of IncomEdge Select(SM), a lifetime withdrawal benefit option for new contract holders of its retail and bank proprietary fixed annuity products. Until now, lifetime withdrawal benefit options were thought to be available only on individual variable annuities and fixed indexed annuities.
Contract holders who elect IncomEdge Select lifetime withdrawals are guaranteed not to outlive their income and can receive annual withdrawals of 5% without annuitization. The benefit guarantees an income for life, even if the account value declines to zero.
"We believe that IncomEdge Select is our industry's first lifetime withdrawal option available on a book value fixed annuity contract," said Bruce R. Abrams, President and CEO of AIG Annuity Insurance Company. "This new living benefit can help our clients manage their financial resources in retirement and provide peace of mind to those seeking guaranteed lifelong income."
IncomEdge Select provides customers with guaranteed withdrawals for life and the ability to start and stop withdrawals at any time and still have access to remaining principal. Anytime after age 65 contract holders may elect to begin receiving annual withdrawals of 5% of IncomEdge Select's benefit base. Once annual withdrawals begin, they are guaranteed for the life of the contract holder and will not decrease as long as withdrawals do not exceed 5%. The annual fee for IncomEdge Select is 0.25% of the benefit base for as long as the fixed annuity contract remains in force. Withdrawals of more than 5% will reduce the level of future guaranteed annual withdrawals to the contract holder.
AIG Annuity Insurance Company is a Texas-domiciled life insurance company founded in 1944 and an indirect, wholly-owned subsidiary of American International Group, Inc. (AIG). AIG Annuity is the largest issuer of fixed annuities in the United States and the leading provider of annuities sold through financial institutions. Serving more than 1.5 million clients, AIG Annuity provides financial institutions with proprietary annuities that are customized, priced, and packaged to meet their specific needs. At September 30, 2006, over 83,500 bank representatives at 747 financial institutions offered fixed annuity products issued by AIG Annuity.
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
IncomEdge Select is issued by AIG Annuity Insurance Company and is not available in all states. All guarantees are subject to the claims-paying ability of AIG Annuity Insurance Company.